Cochin Port Trust to develop multi-user liquid terminal

Shipping and Logistics – News
Cochin Port Trust to develop multi-user liquid terminal
The Kerala government has approved 0.5% VAT on the sale of bunkers from this terminal


The Cochin Port Trust (CPT) has drawn up blueprints to set up multi-user liquid terminal at the Puthuvype Island. The port authority has already published the Request for Qualification (RFQ) for the project and is expecting to receive significant number of bids from both domestic and global companies. When the terminal will be completed it would be used for bunkering as well as handling of liquid petroleum gas (LPG).

It has been estimated that the construction of this terminal will cost around Rs 184.22 crore. The port has appointed Feedback Ventures, one of India's leading integrated infrastructure services company, as the transaction advisor for the project.

Multiple benefits

Joy Jacob, Director of Century Shipyard Pvt Ltd, a mid-sized shipping firm in Cochin, says, “The proposed facility will not only benefit oil companies functioning in and around Cochin, but will also help in reducing oil prices to some extent. Bunkering of ships is very expensive due to the high tax imposed by the Indian government. If more such terminals are set up in other major ports in the country it would be possible to keep the fuel price to international standards.”

The project will be carried out on a design, build, finance, operate and transfer (DBFOT) basis for a concession period of 30 years. The port will invite a fresh round of global tenders for managing operations once the construction of the terminal is over.

T Chandran, Senior Manager, CTOC Haulwell Shipping Pvt Ltd, a mid-sized shipping company in Cochin, says, “Constructing a bunker will definitely give Cochin port an edge, since it strategically falls in the middle of international sea routes.”

Besides its location, Cochin port can also drive various benefits from the Vallarpadam International Container Transshipment Terminal and LNG Regasification Terminal at Puthuvype.

The port has already conducted the feasibility study before setting up the bunkering terminal with the help of Indian Ports Association.